jefferson
2008-Mar-05, 06:05 AM
Hi :)
IPO Market: Visa
Given IPO conditions, it says a lot that Visa will IPO as strong. But that's because there's heavy demand for its product. Visa is a card processor, not a lender. That means it doesn't have to worry about cardholder debt.
Like MasterCard, it makes its money from the transaction fees. It doesn't have to worry about an 11.3% increase in credit card debt, or the tumultuous charge-offs, payment delays and higher delinquencies.
They're benefiting as revolving credit has risen more than 11%, as of November 2007, as compared to the 6.1% of 2006 and the 3.1% of 2005.
And, they're benefiting as credit card debt ballooned to $790 billion, rising at a "rate four times higher than earlier in the decade," says the Center for American Progress.
Despite an unstable global credit market, demand for credit remains high, too, in emerging economies such as Asia and in the Middle East. And, consider this. If Visa and the underwriters don't get greedy in pricing the IPO, shares of the company could make for a great hedge against credit burdens.
From a Ian L. Cooper article.
Bye
:D
DarkElite
2008-Mar-15, 12:33 PM
Fundamentals don't mean much when we talk about the performance of stock in the first day. Demand and supply is the key in the gameplay.
IPOs in the US stock market are not interesting either. If you want to trade IPOs, Hong Kong and China markets would be better go. Many new stock are doing very well. The best stock can double in just one day. It is nothing to get like +50% in one day. Easy money. :D
Interactive Brokers is a good broker. See how it performed when it has IPO.
Interactive Brokers IPO Looks Hyperactive
Interactive Brokers, under the proposed ticker "IBKR," has essentially doubled what the company will raise and what it will ultimately be worth. The IPO was deemed a hot issue, but it has gotten hotter. This may even reach close to $1 Billion in funds raised.
Originally it had filed to sell 20 million shares at $23.00 to $27.00, but the strong demand from the public has jacked up the offering 34.5 million shares with a new higher range of $27.00 to $31.00. This one will price Thursday evening for a Friday trade.
One note to mind here is that this one is coming out via the W.R.Hambrecht OpenIPO(R) system. HSBC is acting as a joint book-runner, and co-managers are listed as Fox-Pitt Kelton, Sandler O'Neill, and E*Trade. This OpenIPO has been shunned by some on Wall Street at the bulge bracket firms, but the other side of the story is that the market buyers determine the actual market pricing rather than bulge bracket firms setting an arbitrary value.
Because of the online broker's footprint, this is a winner as it trades stock, options, futures and currencies on more than 60 global markets. That gives it the advantage hands down to other name online trading firms available to Joe Q. Public.
Interactive Brokers Group - Company and IPO information
Interactive Brokers Group, Inc.1 Pickwick Plaza
Greenwich, CT 06830
Company Web Site (http://www.friendlytraders.com/forum/redirector.php?url=http%3A%2F%2Fwww.interactivebrokers.com%2F) Phone: 203-618-5800
Fax: 203-618-5770
Toll Free: 877-442-2757
Interactive Brokers Group serves investors who interact with world markets, focusing on the use of technology in securities trading. It does business through electronic market-maker Timber Hill, as well as its Interactive Brokers brokerage subsidiaries; it executes more than 500,000 trades daily in stocks, options, futures, foreign exchange, and corporate bonds. Customers may trade on about 60 exchanges and market centers in about 25 countries. The company caters to experienced individual and institutional investors. Large banks and brokerages can also provide the company's interface to their customers through a white-label arrangement. Founder and chairman Thomas Peterffy controls Interactive Brokers Group.
http://images.hoovers.com/images/hbn/1x1.gifIPO Information
Date Went Public: May 4, 2007
Filing Date: Nov 27, 2006
Proposed Offer Price: $27.00 to $31.00
Actual Offer Price: $30.01
First Day Open: $33.00
First Day Close: $31.30
Shares Offered (mil.): 40.00
Offering Amount (mil.): $1,200.40
Post-Offering Shares (mil.): 40.20
Underwriters:
W.R. Hambrecht & Company, LLC; HSBC Securities, Inc.; Fox-Pitt, Kelton Inc.; Sandler O'Neill & Partners, L.P.; E * TRADE Securities LLC
IBKR Latest Quote
29.72 -2.19 (-6.86%) Mar 14 4:00pm ET
Open: 31.88
High: 31.93
Low: 28.74
Volume: 1,553,873
Avg Vol: 1,017,000
Mkt Cap: 1.19B